XA Files 10Q Quarterly Report -- Company's Quarterly Revenue Increases 12.8% to $3.04 Million

XA, Inc., (XA) (OTC BB: XAIN), a major national event marketing firm that serves many Fortune 500 companies, today filed its quarterly report for the fiscal quarter ended March 31, 2006.

Highlights

--  Revenue for the first quarter ended March 31, 2006 rose 12.8% to $3.04
    million from $2.69 million in the same period a year ago
--  Gross Profit for the first quarter ended March 31, 2006 rose 64.9% to
    $1.2 million from $730,668 in the same period a year ago
--  XA Scenes commenced the construction of its first venue in New York
    City
    

Revenue for the fiscal quarter ended March 31, 2006 rose 12.8% to $3.04 million from $2.69 million in the same period a year ago. The Company reported a net loss of $64,625 or ($0.02) per share, compared to a net income of $44,587 or $0.01 per share for the same period in 2005. As of March 31, 2006, current assets rose to $2.2 million from $2.0 million in the same period in 2005. Currently, the number of shares outstanding is 3,777,250 with 1,152,853 shares in the public float.

Marketers spent an estimated $166 billion on event marketing in 2004, up a healthy 9% for the year. Companies earmarked an average 25% of their 2005 budgets for event marketing, up from 10.7% last year, according to PROMO's survey of event marketing executives. (Source: PROMO Magazine, April 2005)

Investors may view the Company's 10QSB filing at www.sec.gov.

About XA

XA has offices in Chicago, New York and Los Angeles from which it provides corporations and highly visible brands with comprehensive event marketing, design and production services. Since 1989, the XA team has been the creative force behind prestigious, national projects for such clients as The NBA, Disney, McDonald's, British Telecom, Song Airlines, Eurex, Olympus, Salvatore Ferragamo, Vogue, W Hotels, ABN AMRO and Emirates Airline. In 2003 and 2004, Special Events Magazine ranked XA as one of the "Top 50 Powerhouse Event Companies in the World."

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. XA, Inc. (OTC BB: XAIN) takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties that is not paid for by the Company.

Newswire by Market Wire